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July 6, 2006
Money Pit With a Happy Ending
"I got a hole in my wall the size of a Buick." Not exactly what you want to hear when you answer a call from your next door neighbor. For David Petersen, who'd recently purchased the 1,100-square-foot house on 18th Street near Greenwood Cemetery for $260,000, these words bck in 2004 were the beginning of an overwhelming process that, among other things, involved him begging and borrowing several hundred thousand dollars more than he initially intended to fix the ailing house. Although his inspector had picked up on a bunch of structural imperfections, he hadn't pointed out the fact that the house had, literally, no foundation. Two years later, though, Petersen and his girlfriend are ensconced in their 12 1/2-foot-wide house finished in a "comfortable modern" style. Perhaps the best news of all? The house was recently reappraised for $1.25 million, allowing Petersen to pay off all his credit cards and second mortgages and even have a nice chunk of equity left over.
Brooklyn Bargain? First Check the Cellar [NY Times]
Comments
1.25MM???? Stop.
Posted by: Anonymous at July 6, 2006 10:52 AM
My exact sentiment 10:52.
Posted by: crouchback at July 6, 2006 11:15 AM
yeah, 1.25 is a bit steep. because it's such a cool reno, i'd say 8 or 9 hundred, tops. cool house, though. i'm directly across the expressway from them and, if our place needed a gut reno, i'd do it just like that!
Posted by: david at July 6, 2006 11:39 AM
I think the could get as much as 1M, given a discount for living across the expressway. it doesn't seem that noisy there, though.. sort of like being on columbia heights, where the BQE is under the street level.
Posted by: OE at July 6, 2006 11:45 AM
I bet the appraisal at 1.25M was a few months ago. Now, it's worth high 900's max. That area, especially on the expressway, has definitely decreased recently.
Posted by: Anonymous at July 6, 2006 11:59 AM
I was surprised at the number but, while that seems a bit high, I don't think it's wildly out of reach, given the quality of the reno. Houses in need of significant rehabs in this area are selling for north of $800k (and two blocks over on Prospect Ave, closer to $1 mil.)
Incidentally, the house next to this one -- with a nice renovation but significantly less square footage -- sold two years ago for $740k.
Posted by: Anonymous at July 6, 2006 12:05 PM
12:05--"selling" as in since June, or "selling" as in May? Perhaps I'm wrong, but it seems to me that prices in areas like this have taken a dive since early Spring.
Posted by: Anonymous at July 6, 2006 12:12 PM
That block is surprisingly quiet and leafy. The Expressway is way underneath so it sounds more like a rushing stream (ok, I know I'm pushing it, but it is a dim sound) -- I think the sound is much better than a "prime" block with idling Fresh Direct trucks and impatient drivers trying to get by.
Posted by: Anonymous at July 6, 2006 1:01 PM
Either way, sounds to me like this guy has already ATM'd this house based on that appraisal, which is a shame since even with lots of reno he would still have been paying a pretty low mortgage for the area.
Posted by: Anonymous at July 6, 2006 1:16 PM
prices diving? sounds like wishful thinking from someone who's looking. I have seen nothing to back that up. This area is moving in tendem with Park Slope, with a pretty stable discount.
Posted by: OE at July 6, 2006 1:49 PM
No 1:49, I'm actually a nervous owner who is thinking of moving, not a wishful buyer. I've been obsessing over the market for months now and it seems pretty clear to me that prices have indeed gone down in all but the very primest parts of the slope. That is, the only houses actually selling are going for less than asking or for reduced prices. I'd be thrilled if anyone can prove me wrong, but that's what my 'research' shows.
Posted by: Anonymous at July 6, 2006 1:55 PM
So is this considered Park Slope South or Gowanus?
Didn't we all laught at the small blue 1 family frame house in the south slope for $499K. How is it different than this one?
Posted by: anonymous at July 6, 2006 2:33 PM
Greenwood Heights.
Posted by: Anonymous at July 6, 2006 2:36 PM
south south slope, or greenwood heights. (no where near gowanus) the block/street is actually fairly quiet. the expressway is quieter than many streets/avenues. also, it's a shorter walk to train than many blocks in the center slope. a few years back this might have been called the middle of nowhere. now its definitely the middle of somewhere.
the little blue house can't hold a candle to this place. it's very sweet. just not 1.25m sweet.
Posted by: david at July 6, 2006 2:40 PM
I mostly hear it referred to as South Slope. Greenwood Heights is a relatively new term, although South Slope's borders have been creeping south for years. As long as its not called Sunset Park (new reputation notwithstanding).
I live on 6th av near 19th.
Posted by: greenwood slope at July 6, 2006 2:47 PM
sellers may of gotten ahead of themselves with their asking prices earlier in the year, but transation prices aren't noticably lower. Realistic price for a 3 story in decent condition in this area, based on what I can tell:
less then 17' feet: 800k-900k
17-19: 900k-1.1m
19 - 21: 1.1m - 1.3m
this area being, say, bet. 6th & 10 ave, prospect ave to prospect expressway.
Posted by: OE at July 6, 2006 2:51 PM
high 900s sounds right from my limited experience, not because prices have taken a swan dive but because the house was never worth $1.25 mil. The guy wanted to cash out equity and this just sounds like a typical case of appraiser delivering the appraisal that he's asked to.
Maybe half a year or a year ago, $1.25 was more like the price for a mint place of this size in the actual south slope (i.e., north of 15th Street). whether or not the market has dived since then -- this house of this size in this location, however lovely, was never going to sell for $1.25M.
Posted by: Anonymous at July 6, 2006 2:54 PM
I think this couple's house is great. I love the modern renovation. Simple and light and airy.
As an aside, how sad is it when every single comment here is about how his could not POSSIBLY be worth x or y or whatever? Maybe someone should start a blog about how your house is NOT worth more than mine.
Posted by: Anonymous at July 6, 2006 5:43 PM
your house definitely isn't worth more than mine
Posted by: Anonymous at July 6, 2006 6:09 PM
zzzz....
Posted by: anon at July 6, 2006 6:10 PM
Nice reno, sure. But it is still a 12.5 ft wide house with very questionable structural quality. How can that be worth anywhere near $1MM outside of super prime nabe/block?
Posted by: Anonymous at July 6, 2006 9:51 PM
To OE -- Not sure what your definition of decent condition is. I think your prices are fairly accurate but for places that need significant cosmetic work at least, and often new kitchens and baths. Mint houses (esp. mint modern renos) garner a premium, particularly in the PS area, where many families with kids can't wait for significant construction work.
Posted by: Anonymous at July 6, 2006 10:36 PM
re: Anonymous at July 6, 2006 05:43 PM
We actually used the architects - Anshu and Bill - and they did a fantastic job on our place. We too were on a tight budget and they kept us right at it, and managed our contractor very well. Resale value is always an issue, but we aren't out to flip it, we wanted to make a home (actually a condo in a bstone), and made it a comfortably modern mix of spaces and textures - very appropriate for the site.
Posted by: neil at July 7, 2006 8:02 PM
10:36am -- agreed
Posted by: OE at July 8, 2006 3:14 PM
Who was the contractor on this project?
Posted by: Anonymous at July 10, 2006 9:57 AM
mark monk, inc was the contractor.
Posted by: Anonymous at July 10, 2006 2:41 PM
Does anyone know the dimensions of this house? I know it's just 12.5 wide, but it looks long.
I love the open living room. But there's not much privacy, is there!
Posted by: feelingdesperate at July 13, 2006 12:38 AM
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